Category Archives: Retirement planning

retirement planning for a safe future

Why should you care about Inflation?

inf3It’s a useful paradox: By learning more about how money affects our lives, we can make sure it doesn’t take over our lives, and by learning how to look after our financial capital, we can also take better care of our human capital. Inflation is the evil that we cannot control, but we need to consider it in our financial planning either it is for our retirement or for children’s education. Continue reading

5 Key Takeaways for Common Man from 2015 Budget!

bud33While some experts claim that this year’s budget is pragmatic, others say it is pro-corporate budget with nothing much for common man, except for additional taxes and no change in tax slabs (which is important for Indian middle class). I think it is a balanced budget with a long-term vision and addresses couple of key areas for the Indian middle class: more exemptions for long-term savings towards retirement and curbing black money. Continue reading

 Amazing Power of Compound Interest?

ci7 The most powerful force on the internet is Compound Interest  Albert Einstein.

The Single big investment mistake you can make is not starting early, power of compounding can be your ally in the financial battle with an evil force called inflation :-)


To illustrate further, let us consider a couple of examples.

1. One saver (Ram) who starts early (age 25), invests Rs 10,000 every month, until he reaches 35 and stops investing. Continue reading

Retirement Planning in 20’s and 30’s

How would you feel if you didn’t have to worry about money issues after retirement? Good? Or is the answer relieved?!

Financial security alleviates one of the most stressful issues in our lives and helps build confidence for the future. Building this security is an arduous process, if you start late. On the contrary if you start early, the same process Continue reading

The ins and outs of Gratuity

Let me put it this way – there aren’t too many benefits to loyalty in this world, but Gratuity is one of the few benefits that do exist. If you work for same employer for five years or more, you qualify for gratuity. This benefit is mandated by payment of Gratuity act. Gratuity = gratefulness! I get a lot of questions regarding Gratuity benefits. The first comment almost always is:

“Gratuity sounds good! But what will I get?”

Money PlantThe amount you will receive is directly linked to the number of years you served and the last drawn monthly salary. This is the rough estimate. For example, if you have served for 10 years and if your last monthly basic and DA is Rs 25,000

Then, your gratuity=(number of years of service)*(last drawn monthly basic and DA)*15/26 which is 10*25000*15/26= Rs 1,44,230

A good amount! The next question that follows is:

“How does this impact me?”

 Well, there is an impact on your tax! If you are a government employee up to Rs 10 lakh is tax exempt. For others, the limit was Rs 3.5Lakh. In 2013, this limit was changed to 10 lakh for everyone.

The price for your loyalty to your company is worth it, would you not agree?